Big tech reverses portfolio expansion, while other industries slow pace of contraction

Office footprint changes among five largest occupiers
 

• Recent lease terminations and sublease listings among some of the largest technology companies have driven the five largest technology occupiers’ footprints down marginally over year-end 2021 levels, declining 2.0% when accounting for sublease listings, lease terminations and construction holds.
  
  
• Meta Platforms (formerly Facebook) has been among the most active in reducing its footprint, shedding over 2.7 million s.f. during the past two months, in tandem with cuts in employee headcount.
  
  
• While Big Tech has experienced a small rightsizing in the second half of 2022, it remains the only major office-using industry which has expanded its office portfolios since the outset of the pandemic, with total office space leased or owned still up nearly 18% from year-end 2019 levels.
  
  
• Although rightsizing strategies for national tenants take several years to accomplish given the average term of office leases, other major sectors including finance, government, flexible office providers and telecom are all showing signs of slowing the pace of downsizing.